PIMCO Global Optima Index - Insurance Agency Marketing ...

1 Dynamically Blending Global Equity and Fixed Income Markets to Help Deliver Upside Growth PotentialPIMCO Global Optima Index Issued by American General Life Insurance Company (AGL), an American International Group, Inc. (AIG) member company. 210/10/17 11:07 AMWhat Is the PIMCO Global Optima Index ?The PIMCO Global Optima Index is a quantitative, rules-based Index that seeks to provide upside return potential by dynamically adjusting its allocations to a diverse range of Global equity and fixed income markets. The PIMCO Global Optima Index has been designed exclusively for AIG s retirement products by Pacific Investment Management Company LLC ( PIMCO ), one of the world s premier asset managers.

2 It is available in select annuity products issued by AIG member company, American General Life Insurance Company. The Power of PIMCOWith the PIMCO Global Optima Index , you can benefit from the knowledge and expertise of one of the world s leading investment managers with extensive experience in rules-based strategies. Founded in 1971, PIMCO has focused on creating opportunities for investors in every environment for more than 45 years. PIMCO believes that performance starts with preparation. It conducts exhaustive research and analysis to continuously evaluate the world s changing risks and opportunities, from broad economic trends to individual securities.

3 The company s aim is to deliver forward-looking solutions that help maximize the possibilities for its 310/10/17 11:07 AM1 Note: The information contained herein is supplemental to a consumer product brochure and must be used in conjunction with this brochure. The PIMCO Global Optima Index is only available within the Power Series of Index Annuities. These products are not investments in the stock market or any Index . They are Insurance products that offer individuals the opportunity to earn interest based in part on the performance of a specified Index . Please see page 9 and the back cover for more Diversification, volatility control measures and risk management strategies do not guarantee positive performance or prevent negative Powerful Combination of Global Diversification and Enhanced Return Potential The PIMCO Global Optima Index (the Index )

4 Is designed to enhance return potential and manage risk by blending Global diversification with momentum- and value-based allocation Key Features of the PIMCO Global Optima Index 1 Upside Growth PotentialBy expanding equity allocation beyond traditional large-cap stocks to include small-cap, mid-cap, international and emerging market securities, the Index can provide potentially stronger growth than a single-sector Index . 2 Smart Beta ApproachTo help boost returns, the Index employs an alternative (also known as smart beta ) approach to equity rebalancing. Allocations are dynamically managed, using market size or capitalization as a starting point and favoring those sectors that have experienced strong recent gains (momentum) or that appear to be underpriced (value).

5 3 Allocation FlexibilityAllocations to equities, fixed income and cash are adjusted on a daily basis. The Index has the flexibility to shift equity allocations from 0% to 100% to help capitalize on rising markets or protect against falling 410/10/17 11:07 AMAllocations between Global equities and bonds are adjusted daily to help maintain a target volatility of Cash may be added during periods of extreme Manage Risk on a Daily Basis1. Equity weightings are rebalanced every month based on market capitalization, momentum and value to help capture Diversify Across Global StocksA 2-Step Quantitative Approach to Help Boost ReturnsThe PIMCO Global Optima Index diversifies equity allocations across large-, mid- and small-cap, international and emerging market stocks using key trading signals and quantitative insights.

6 These preset rules do not change in response to market or economic conditions. As a result, allocation decisions are not impacted by emotions, making the process objective, consistent and transparent. Combine Global Diversification With Active Risk ManagementNote: The Index is diversified across the following constituents: large-cap stocks (SPDR S&P 500 ETF); mid-cap stocks (SPDR S&P MidCap 400 ETF); small-cap stocks (Russell 2000 Index ); international stocks (MSCI EAFE); emerging market stocks (MSCI Emerging Markets Index ); and bonds (iShares Core Aggregate Bond ETF). All equity indices are total return indices, including dividends.

7 Indices are unmanaged and not available for direct investment. See page 9 and back cover for Index constituent definitions and the risks associated with these allocations. Daily Adjustments 1 Upside Growth 510/10/17 11:07 AMAccess the Upside Potential of Multiple Markets The PIMCO Global Optima Index offers access to a wide selection of Global stocks and bonds. This flexibility can help the Index benefit from upward trends in diverse markets, while also providing downside risk management. As the chart below shows, no single market has been the highest performer year over year in the last decade. Past performance is not a guarantee of future : Past performance is not indicative of future results.

8 Returns are based on the following indices: large-cap stocks (S&P 500 Index ); mid-cap stocks (S&P 400 Index ); small-cap stocks (Russell 2000 Index ); international stocks (MSCI EAFE Index ); emerging market stocks (MSCI Emerging Markets Index ); and bonds (Barclays Aggregate Bond Index ). All equity indices are price return indices, excluding dividends. Indices are unmanaged and not available for direct investment. See page 9 and back cover for Index definitions and the risks associated with the equity and bond Single Segment of the Global Equity market Has Been the Top Performer Every Year Over the Last DecadeHistorical annual returns of various stock and bond markets, ranked from best to worst.

9 2001-20163200120022003200420052006200720 08200920102011201220132014201520168%10%5 2%22%30%29%36%5%74%25%8%16%37%11%1%19%1% -8%45%18%11%23%9%-35% 35% 25%0%15%32%8%-1%19%-2%-15%35%17%11%17%7% -37%28%16%-3%15%30%6%-3%10%-5%-18%34%15% 3%14%7%-38%25%13%-5%14%19%4% -4%9%-13%-22%26%9%3%9%4%-45%23%7%-15%13% -2%-5%-6%3%-23%-23%4% 4%2%4%-3%-54%6%5%-20%4%-5%-7%-17%-2% Large-Cap StocksEmerging market Mid-Cap Small-Cap StocksInternational 610/10/17 11:07 AMEquity Weightings Are Dynamically Managed Across Global Markets Using 3 Important MeasuresThe Index goes beyond conventional market cap-weighted indices, leveraging alternative smart beta strategies to help find the optimal mix of Global equities.

10 Allocations are determined and rebalanced every month using: 1. market capitalization as the baseline for the equity allocations. The greater the size of an equity market , the more weight it may have in the Momentum signals to assess market sentiment and trends. The Index aims to overweight sectors that have recently performed well and underweight those that have lagged behind. 3. Value signals to evaluate price and the possibility for future growth. The Index looks for equity markets that may be undervalued due to large recent losses, while avoiding markets that have experienced strong gains and may be PIMCO Global Optima Index Uses market Cap, Momentum and Value Signals to Seek an Optimal Equity AllocationThis example may not represent the current allocations of the Index .